Several things could have happened-
1) They could have over-compacted the asphalt, causing cracks and therefore had to cut, dig out and patch certain areas.
2) Some sort of underground work came up after or hadnt been finished before the asphalt was layed (two or more contractors not on the same page)
3) They might have gotten the drainage wrong and had to re-do it due to "bird baths" or small areas holding water.
4) As for the machine (milling machine or planer) removing the entire area, they could have not met the density requirement/specs for the job.
5) There could have been a base material failure that was not detected until they layed the asphalt and rolled it several times with the double drum asphalt roller. Then they noticed a soft spot. Thats probably the most common problem right there.
Again, these are just guesses without seeing the actual failures in person and there are several other possibilities as well. Basically it comes down to the guys in the field screwing up the job and having to re-do it. It happens from time to time in the world of asphalt, because you have to get things just right the first time.
ETA: Yeah thats a Wirtgen W120F 4' drum milling machine. We have one just like it. On that project, they're milling and re-laying that parking lot. You have to mill down the old asphalt when you have concrete curbs like that, or else your 6" tall curb becomes a 4" tall curb, among other reasons. Also, If you have a concrete curb and gutter design, you have to mill down 2" below the gutter, so you can tie in to the top of the gutter with the top of your new asphalt.